Which insurance covers liability arising from products or services the business sells?

• A. Public Liability Insurance
• B. Employers Liability Insurance
• C. Professional Indemnity Insurance
• D. Product Liability Insurance

Answer: (D)

Product Liability Insurance covers liability that arises from the products or services a business sells. If a customer is harmed or their property is damaged because of a defect in a product you supplied or due to a service you performed, this policy helps pay for legal costs, settlements, or judgments. It directly addresses the risk tied to what you offer for sale to customers.

To place it in context, public liability protects third-party injuries or property damage related to the business’s day-to-day activities, such as injuries on your premises or during general operations, but not specifically from a faulty product or service. Employers liability covers injuries to staff, while professional indemnity covers financial losses caused by professional advice or services you provide. Since the scenario centers on liability stemming from the products or services you sell, this is the appropriate coverage.